The South Korean won (KRW) came under significant pressure on international foreign exchange markets this year, declining by almost 10% against the U.S. dollar since the start of January alone. At one point, the greenback was up over 20% against the South Korean currency.

Yet while the won was one of the world’s worst-performing currencies in the first three quarters, it has bounced back from a 13-year low towards the end of 2022 to post the best fourth-quarter currency performance in Asia. Central bank officials, politicians, business leaders and others have had to navigate this volatility.

Several factors explain these